With a mounting financial crisis spreading, the current economic situation crisis raises two major questions: drawing a rescue plan to remedy the struggling financial sector, idea proposed for the first time in Romania in December by Herbert Stepic, CEO of Raiffeisen International, and the debate on the reduction or maintaining the required reserve ratio.
Proll: Banks in Romania will take advantage of the stimulus package from Austria
Austrian politicians and bankers, heads of Romanian lenders and representatives of the central bank, together with governor Mugur Isarescu, propose different situations to secure the monetary stability and to reinstate confidence in the banking system.
At the end of his visit in Bucharest, which was aimed to proposing a protection plan for the banks, the Austrian ministry of Finances said the banks in Romania would take advantage of the 100-billion euro stimulus package drawn by Austria. “Banks in Romania will dig in the 100-billion euro stimulus package that big Austrian lenders also present in Romania have already taken advantage of”, said Josef Proll (photo).
Austria announced late last year an emergency rescue package for the crisis-hit banking system of 100 billion euro, of which 15 billion euro were earmarked for capital injections and 85 billion euro as state guarantees for banks. Erste and Raiffeisen, the two Austria’s heavyweights that expanded heavily in Eastern Europe, including in Romania, were the recipients of capital injections and state guarantees for bond issuing.
“It is clearly that, through the current measures adopted by Austria, we want to ensure that the Romanian banks will take advantage, indirectly of course, of this 100-billion euro package, of which 15 billion are earmarked for direct capital, and the remaining 85 billion euro as state guarantees”, Proll said.
He added that
